Media Room

FIS and its clients take home a total of 10 awards in the Treasury Management International Awards and the Global Finance Awards.

JACKSONVILLE, Fla., Feb. 20, 2018 – FIS™ (NYSE: FIS), a global leader in financial services technology, today announced that it and its clients recently earned a total of 10 prestigious awards for the quality and innovation of their corporate liquidity solutions.

FIS was recognized for Best Accounts Payable Solution (for FIS Trax), Best Accounts Receivable (for FIS GETPAID) and Best Overall TMS & Cash Management Solution (for FIS Integrity SaaS) at the Treasury Management International (TMI) Awards. It also took home Global Best Treasury Management Software at the Global Finance World’s Best Treasury & Cash Management Banks and Providers 2018.

FIS corporate liquidity solutions also supported the following clients in earning awards:

Dassault Systèmes received a TMI Award for Credit & Collections

Endemol Shine, in cooperation with Zanders, received a Global Finance Award for Global Best Corporate Implementation of a Treasury Management Systems Program

Merck KGaA (referenced as EMD in the US & Canada) received a TMI Award for Treasury Technology.

Other FIS clients also won TMI Awards for Shared Services and Treasury Team of the year, and the Global Finance Award for Global Best Corporate Implementation of a Working Capital Management Program.

“Clients rely on FIS for innovative, efficient solutions that empower their treasury, payments, and credit and collections operations,” said Andrew Bateman, head of Corporate Liquidity and Bank Treasury at FIS. “We are honored our solutions could be recognized for helping our clients manage their liquidity and risk requirements and that five of our clients have been recognized as well for their achievements.”

These awards follow FIS recognition for Best Accounts Payable Solution and Best Accounts Receivable Solution in the 2017 TMI and Global Finance programs.

About FISFIS is a global leader in financial services technology, with a focus on retail and institutional banking, payments, asset and wealth management, risk and compliance, and outsourcing solutions. Through the depth and breadth of our solutions portfolio, global capabilities and domain expertise, FIS serves more than 20,000 clients in over 130 countries. Headquartered in Jacksonville, Fla., FIS employs more than 53,000 people worldwide and holds leadership positions in payment processing, financial software and banking solutions. Providing software, services and outsourcing of the technology that empowers the financial world, FIS is a Fortune 500 company and is a member of Standard & Poor’s 500® Index. For more information about FIS, visit www.fisglobal.com.

Diluted EPS from continuing operations of $2.93, and Adjusted EPS of $1.36

Net cash provided by operating activities of $662 million, and free cash flow of $551 million

Full-Year 2017

GAAP revenue of $9,123 million

Diluted EPS from continuing operations of $3.93, and Adjusted EPS of $4.42

Net cash provided by operating activities of $1,741 million, and free cash flow of $1,595 million

JACKSONVILLE Fla., Feb. 6, 2018 – FIS™ (NYSE: FIS), a global leader in financial services technology, today reported fourth quarter and full-year 2017 results. The Company’s GAAP results were impacted by “The Tax Cuts and Jobs Act” and the divestitures of its public sector and education business and its consulting businesses in 2017.

Fourth Quarter 2017

GAAP revenue decreased 4.7 percent to $2,329 million from $2,445 million in the prior year quarter. Operating income increased to $485 million from $432 million in the prior year quarter, while operating income margin expanded 310 basis points to 20.8 percent. Net earnings from continuing operations attributable to common stockholders and diluted EPS in the period were significantly impacted by “The Tax Cuts and Jobs Act” which recently passed into legislation. This legislation resulted in a net tax benefit of $781 million to our net earnings from continuing operations attributable to common stockholders, or $2.32 of diluted EPS. Net earnings from continuing operations attributable to common stockholders was $988 million for the quarter, or $2.93 per diluted share, compared to $0.63 per diluted share in the prior year quarter.

For the fourth quarter, organic revenue increased 3.1 percent. Adjusted EBITDA increased to $881 million for the quarter, from $846 million in the prior year quarter, while adjusted EBITDA margin expanded 340 basis points to 37.8 percent. Adjusted net earnings from continuing operations attributable to common stockholders was $458 million for the quarter, or $1.36 per diluted share, compared to $1.14 per diluted share in the prior year quarter.

Full-Year 2017

GAAP revenue decreased 1.3 percent to $9,123 million from $9,241 million in the prior year period. Operating income increased to $1,492 million from $1,298 million in the prior year period, while operating income margin expanded 240 basis points to 16.4 percent. Net earnings from continuing operations attributable to common stockholders was $1,319 million for the year, or $3.93 per diluted share, compared to $1.72 per diluted share in the prior year period.

For the year, organic revenue increased 2.0 percent. Adjusted EBITDA increased to $3,068 million for the year, from $2,945 million in the prior year period, while adjusted EBITDA margin expanded 240 basis points to 33.6 percent. Adjusted net earnings from continuing operations attributable to common stockholders was $1,483 million for the year, or $4.42 per diluted share, compared to $3.82 per diluted share in the prior year period.

“We are very pleased to deliver results that exceeded our profitability and earnings expectations, delivering exceptional margin expansion and significant shareholder returns,” said Gary Norcross, FIS president and chief executive officer. “Our strategy is working and our leadership team is continuing to execute very well. We are confident in our continuing ability to deliver positive results in a rapidly changing industry.”

Segment Information

The Company’s segment GAAP results were impacted by the divestitures of its public sector and education business and its consulting businesses in 2017.

Integrated Financial Solutions (IFS):

Fourth quarter GAAP revenue increased 4.6 percent to $1,200 million from $1,147 million in the prior year quarter. Organic revenue increased 5.6 percent. Adjusted EBITDA increased to $498 million from $473 million in the prior year quarter, and adjusted EBITDA margin was 41.5 percent, representing expansion of 20 basis points.

Full-year GAAP revenue increased 2.3 percent to $4,630 million from $4,525 million in the prior year period. Organic revenue increased 2.8 percent. Adjusted EBITDA increased to $1,868 million from $1,798 million in the prior year period, and adjusted EBITDA margin was 40.3 percent, representing expansion of 60 basis points.

Global Financial Solutions (GFS):

Fourth quarter GAAP revenue decreased 8.5 percent to $1,046 million from $1,143 million in the prior year quarter. Organic revenue increased 3.1 percent. Adjusted EBITDA increased to $442 million from $412 million in the prior year quarter, and adjusted EBITDA margin was 42.3 percent, representing expansion of 630 basis points.

Full-year GAAP revenue decreased 2.6 percent to $4,138 million from $4,250 million in the prior year period. Organic revenue increased 3.1 percent. Adjusted EBITDA increased to $1,415 million from $1,292 million in the prior year period, and adjusted EBITDA margin was 34.2 percent, representing expansion of 380 basis points.

Corporate / Other:

Fourth quarter GAAP revenue decreased 46.5 percent to $83 million compared to $155 million in the prior year quarter. Organic revenue decreased 23.0 percent. Adjusted EBITDA loss was $60 million and is inclusive of $79 million of corporate expenses.

Full-year GAAP revenue decreased 23.8 percent to $355 million compared to $466 million in the prior year period. Organic revenue decreased 16.8 percent. Adjusted EBITDA loss was $215 million and is inclusive of $298 million of corporate expenses.

Balance Sheet and Cash Flow

As of December 31, 2017, cash and cash equivalents totaled $665 million and debt outstanding totaled $8,763 million. Fourth quarter net cash provided by operating activities was $662 million and free cash flow was $551 million. Full-year net cash provided by operating activities was $1,741 million and free cash flow was $1,595 million.

The Company repurchased 1.1 million common shares at a total cost of approximately $100 million in the fourth quarter. Approximately $3,900 million remained under the existing share repurchase authorization as of December 31, 2017. The Company paid dividends of $96 million in the fourth quarter and $385 million in the year.

2018 Guidance

The Company’s 2018 GAAP and non-GAAP guidance reflect the impact of “The Tax Cuts and Jobs Act” and includes the impact of the new revenue recognition accounting standard (ASC 606). The Company’s 2018 GAAP guidance is also impacted by the divestitures of its public sector and education business and its consulting businesses in 2017.

As a direct result of “The Tax Cuts and Jobs Act,” in 2018 FIS will be incrementally investing up to $100 million into: our employees, innovation and data center consolidation.

Webcast

FIS will sponsor a live webcast of its earnings conference call with the investment community beginning at 8:30 a.m. (EDT) Tues., Feb. 6, 2018. To access the webcast, go to the Investor Relations section of FIS’ homepage, www.fisglobal.com. A replay will be available after the conclusion of the live webcast.

Use of Non-GAAP Financial Information

Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting in the United States. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions and in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, we have provided certain non-GAAP financial measures.

We believe these non-GAAP measures help investors better understand the underlying fundamentals of our business. As further described below, the non-GAAP revenue and earnings measures presented eliminate items management believes are not indicative of FIS’s core operating performance. The constant currency and organic revenue increase/decrease measures adjust for the effects of exchange rate fluctuations, while organic revenue increase/decrease also adjusts for acquisitions and divestitures, giving investors further insight into our core performance. Finally, the non-GAAP cash flow measures provide further information about the ability of our business to generate cash. For these reasons, management also uses these non-GAAP measures in its assessment and management of FIS’ performance.

Adjusted revenue consists of processing and services revenue, increased to reverse the purchase accounting deferred revenue adjustment made upon the acquisition of SunGard. The deferred revenue adjustment represents revenue that would have been recognized in the normal course of business by SunGard under GAAP but was not recognized due to GAAP purchase accounting adjustments. The deferred revenue adjustment in purchase accounting was made entirely in the Corporate and Other segment; reported GAAP results for the IFS and GFS segments are not affected by this adjustment and, therefore, no adjusted revenue is presented for these segments.

Constant currency revenue represents (i) adjusted revenue, as defined above, in respect of the consolidated results and the corporate and other segment and (ii) reported revenue in respect of the IFS and GFS segments, in each case excluding the impact of fluctuations in foreign currency exchange rates in the current period.

Organic revenue increase/decrease is constant currency revenue, as defined above, for the current period compared to an adjusted revenue base for the prior period, which is further adjusted to add pre-acquisition revenue of acquired businesses for a portion of the prior year matching the portion of the current year for which the business was owned, and subtract pre-divestiture revenue for divested businesses for the portion of the prior year matching the portion of the current year for which the business was not owned, for any acquisitions or divestitures by FIS.

Adjusted EBITDA is EBITDA, as defined above, which also excludes certain costs and other transactions which management deems non-operational in nature, the removal of which improves comparability of operating results across reporting periods. This measure is reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing their performance. For this reason, adjusted EBITDA, as it relates to our segments, is presented in conformity with Accounting Standards Codification 280, Segment Reporting, and is excluded from the definition of non-GAAP financial measures under the Securities and Exchange Commission's Regulation G and Item 10(e) of Regulation S-K.

Adjusted net earnings from continuing operations excludes the impact of certain costs and other transactions which management deems non-operational in nature, the removal of which improves comparability of operating results across reporting periods. It also excludes the impact of acquisition-related purchase accounting amortization, which is recurring.

Adjusted cash flow from operations reflects GAAP cash flow from operations as adjusted for the net change in settlement assets and obligations, and excludes certain transactions that are closely associated with non-operating activities or are otherwise non-operational in nature and not indicative of future operating cash flows.

Free cash flow reflects adjusted cash flow from operations less capital expenditures. Free cash flow does not represent our residual cash flow available for discretionary expenditures, since we have mandatory debt service requirements and other non-discretionary expenditures that are not deducted from the measure.

Any non-GAAP measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP measures. Further, FIS’ non-GAAP measures may be calculated differently from similarly titled measures of other companies. Reconciliations of these non-GAAP measures to related GAAP measures, including footnotes describing the specific adjustments, are provided in the attached schedules and in the Investor Relations section of the FIS web site, www.fisglobal.com.

FIS is a global leader in financial services technology, with a focus on retail and institutional banking, payments, asset and wealth management, risk and compliance, and outsourcing solutions. Through the depth and breadth of our solutions portfolio, global capabilities and domain expertise, FIS serves more than 20,000 clients in over 130 countries. Headquartered in Jacksonville, Fla., FIS employs more than 53,000 people worldwide and holds leadership positions in payment processing, financial software and banking solutions. Providing software, services and outsourcing of the technology that empowers the financial world, FIS is a Fortune 500 company and is a member of Standard & Poor’s 500® Index. For more information about FIS, visit www.fisglobal.com.

This news release and today’s webcast contain “forward-looking statements” within the meaning of the U.S. federal securities laws. Statements that are not historical facts, including statements about anticipated financial outcomes, including any earnings guidance of the Company, business and market conditions, outlook, foreign currency exchange rates, expected dividends and share repurchases, the Company’s sales pipeline and anticipated profitability and growth, as well as other statements about our expectations, beliefs, intentions, or strategies regarding the future, are forward-looking statements. These statements relate to future events and our future results, and involve a number of risks and uncertainties. Forward-looking statements are based on management’s beliefs, as well as assumptions made by, and information currently available to, management. Any statements that refer to beliefs, expectations, projections or other characterizations of future events or circumstances and other statements that are not historical facts are forward-looking statements.

Actual results, performance or achievement could differ materially from those contained in these forward-looking statements. The risks and uncertainties that forward-looking statements are subject to include, without limitation:

the risk that acquired businesses will not be integrated successfully, or that the integration will be more costly or more time-consuming and complex than anticipated;

the risk that cost savings and other synergies anticipated to be realized from acquisitions may not be fully realized or may take longer to realize than expected;

the risk of doing business internationally;

changes in general economic, business and political conditions, including the possibility of intensified international hostilities, acts of terrorism, changes in either or both the United States and international lending, capital and financial markets, and currency fluctuations;

the effect of legislative initiatives or proposals, statutory changes, governmental or other applicable regulations and/or changes in industry requirements, including privacy regulations;

the risks of reduction in revenue from the elimination of existing and potential customers due to consolidation in, or new laws or regulations affecting, the banking, retail and financial services industries or due to financial failures or other setbacks suffered by firms in those industries;

changes in the growth rates of the markets for our solutions;

failures to adapt our solutions to changes in technology or in the marketplace;

internal or external security breaches of our systems, including those relating to unauthorized access, theft, corruption or loss of personal information and computer viruses and other malware affecting our software or platforms, and the reactions of customers, card associations, government regulators and others to any such events;

the risk that implementation of software (including software updates) for customers or at customer locations may result in the corruption or loss of data or customer information, interruption of business operations, exposure to liability claims or loss of customers;

the reaction of current and potential customers to communications from us or regulators regarding information security, risk management, internal audit or other matters;

competitive pressures on pricing related to the decreasing number of community banks in the U.S., the development of new disruptive technologies competing with one or more of our solutions, increasing presence of international competitors in the U.S. market and the entry into the market by global banks and global companies with respect to certain competitive solutions, each of which may have the impact of unbundling individual solutions from a comprehensive suite of solutions we provide to many of our customers;

the failure to innovate in order to keep up with new emerging technologies could impact our solutions including the ability to attract new, or retain existing, customers;

an operational or natural disaster at one of our major operations centers; and

other risks detailed under “Risk Factors” and other sections of our Annual Report on Form 10-K for the fiscal year ended December 31, 2016 and other filings with the SEC.

Other unknown or unpredictable factors also could have a material adverse effect on our business, financial condition, results of operations and prospects. Accordingly, readers should not place undue reliance on these forward-looking statements. These forward-looking statements are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Except as required by applicable law or regulation, we do not undertake (and expressly disclaim) any obligation and do not intend to publicly update or review any of these forward-looking statements, whether as a result of new information, future events or otherwise.

Events

Technology is reshaping the banking landscape as more customers prefer banking electronically than in-branch. This conference will provide an overview of the hot technologies that are shaping the world, including the financial services sector. Be sure to visit FIS at Booth #55 in the exhibit hall.

CUNA Government Affairs Conference - February 25, 2018

Washington Convention Center
Washington, D.C.

Visit FIS at Booth #333 in the exhibit hall at the CUNA Government Affairs Conference. This is the premier event for political impact in the credit union industry, gathering thousands of industry leaders to meet with legislators and regulators. Attendees will make connections with credit union leaders from across the country and cutting-edge vendors.

SuperReturn International - February 26, 2018

SuperReturn International is the world's largest private equity and venture capital event. With more than 2300 senior decision-makers from 40+ countries, FIS will be an exhibitor showcasing our private equity accounting and administration solution, Investran.